A virtual data room is an online repository for important business documents. A VDR helps to speed up and simplify important investment processes by allowing all parties involved in the transaction to access, review and share important documents from one place. Virtual data rooms make communication easier and provide transparency to adjusters who are appointed internally or externally, auditors and attorneys.
Investment bankers work with an abundance of documents during due diligence, IPOs, and capital raising transactions. The ability to have all the relevant documents in one place allows the appropriate people to take the right decisions at the right time and also improves efficiency.
Due diligence begins when a buyer is identified a candidate and submits an initial letter of inquiry or a term sheet. Startups must therefore begin to build an information room well before that date to ensure that they are able to offer the necessary information to potential buyers.
When it’s time to sell a business the documentation required to sell a business is extensive and includes confidential and proprietary data. FirmRoom is an investment banking dataroom, streamlines the management of this information. It also ensures that the documents are only viewed by the appropriate parties.
During the IPO it is essential that investors are able to access all the documents required for the investment. Being able to access all the documents together helps investment bankers quickly discover areas of concern and get deals completed. A data room can be set up to only share the most relevant information to various kinds of investors. Security features include digital watermarking and granular permissions to protect against theft of information.